CIC has released a criminal, eviction, and credit report for September through December, 2018. Highlighting the number of rental applicants that have criminal and eviction records on their tenant background checks, as well as the average FICO credit score, CIC’s quarterly data analysis shows that the applicants that are applying to your rental properties have promise
Criminal and Eviction Records within the Multifamily Housing Industry
September to December of 2018 yielded promising results for multifamily properties. This quarter showed that among all the tenant background checks processed, an average of 20.18% produced a criminal record. On the flip-side, this means that 70.82% of the rental applicants scanned did not have a criminal record in their background checks.
Quarterly, an average of 5.91% of all rental applicants possessed an eviction record, with an average of 8.7% producing an enhanced ‘eviction+’ record.
What’s the difference between a nationwide eviction scan and an enhanced eviction+ scan? Overall, the eviction record search looks for public record data on your rental applicant’s file within a proprietary database of 36+ million records built by CIC. This nationwide scan includes looking into past court actions, unlawful detainers, monetary judgments and court-ordered possessions. Eviction+ pairs CIC’s national eviction search with a more enhanced address history search.
Flip to See CIC's Criminal, Eviction, & Eviction+
FICO Credit Scores
Alongside new rental housing criminal and eviction data, this quarter’s FICO credit scoring data revealed mixed results. For the good news – on average, 37.6% of all rental applicants scored this quarter had an excellent or good credit score, with FICO scores between 701 – 850. For the not-so-great news – an average of 34.55% of the applicants scored had a poor or very poor credit score, with FICO scores ranging between 300 – 640.
If your rental properties are encountering more low credit scores than high ones, it might be a good idea to add a policy targeting lower scores to your rental criteria that considers additional rental factors. These can be your property’s location, your rental competition, and even weighing the applicant’s criminal and eviction history.